GameSquare Esports Inc. (CSE:GSQ) announced that it has updated its revenue guidance for the fourth quarter of 2021 to approximately $7.5 million on the back of its products, relentless monetization and recurring revenue opportunities.
The international gaming and esports company headquartered in Toronto noted that this is a significant jump from sales of $2.5 million in the third quarter.
GameSquare said its revenue guidance of $28 million for 2022 remains unchanged.
The company said the financial performance includes a full quarter of contributions from US esports organization Complexity Gaming, Los Angeles-based gaming and lifestyle marketing agency Cut+Sew, Gaming Community Network (GCN), and UK esports talent agency Code Red.
GameSquare expects to release its audited 2021 financial statements in April 2022. It will host a webcast on January 20, 2022, at 4pm ET to discuss recent operational highlights with full details at investors.gamesquare.com. Participants can register here.
"The progress we have made to provide revenue guidance of $7.5 million for Q4 2021 is a reflection of our stellar people, products, relationships, and relentless attention to monetization throughout the company," GameSquare CEO Justin Kenna said in a statement.
"We have streamlined our sales processes and have fostered relationships with global brands throughout 2021. This work reinforces our foundation for achieving our revenue guidance of $28 million in 2022. In addition, we have several exciting opportunities to build recurring revenue within our existing business, and we are developing new businesses that are expected to be profitable from the outset. In my view, this a strong finish to 2021 and a great start to 2022."
The revenue guidance is unaudited and is subject to change in connection with the completion of the company's year-end accounting procedures.
The company highlighted the following near-term catalysts:
- Growing sales within digital agency vertical: GameSquare is building a leading esports and gaming organization with digital media and marketing agencies that connect brands with the large and growing esports and gaming audiences.
- Creating compelling content: Complexity Gaming generated over 3.2 billion viewer minutes in 2021. A key strategic priority for the company is to consistently create compelling content that attracts new viewers to the Complexity platform.
- Enhancing social presence: The company will seek to enhance its social media presence through its portfolio companies and through streamers and content creators within Complexity Gaming, including talent such as TimTheTatman, Baka Bros, Ninjayla, Electra, and the professional athletes and celebrities within Complexity Stars.
- Developing new revenue streams: GameSquare has identified four lines of business that it believes can accelerate sales growth and realization of profitability related to increased investment in merchandise, monetization of streaming talent, being an agency of record with pro sports franchises and global brands, and holding world-class events at The Star in Frisco and other top tier venues.
- Enhancing liquidity: Management is currently assessing potential opportunities to enhance access to GameSquare stock.
In operational highlights, the company noted that Baka Bros, with more than 1.5 million followers, joined Complexity Gaming. It has also launched Complexity Stars, a new gaming division that connects athlete and celebrity gamers with the larger gaming community.
Investors can read about more operational highlights here.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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